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Punjab & Sind Bank plans to raise Rs 2,000 cr via QIP likely in H2 FY25 | Financial News
Funding may be completed in the second or third quarter, depending on market conditions
The bank’s capital adequacy ratio stood at 17.10 percent at the end of March 2024 | Photo: ShutterstockPress Trust of India New Delhi
State-run Punjab & Sind Bank plans to raise Rs 2,000 crore in the second half of this fiscal through Qualified Institutional Placement (QIP) to fund business growth.
“The board has already given approval and merchant bankers should be onboarded by August,” Punjab & Sind Bank managing director and CEO Swarup Kumar Saha told PTI.
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Fundraising could be completed in the second or third quarter, depending on market conditions.
The QIP would help improve the bank’s Capital Adequacy Ratio, he said.
The bank’s capital adequacy ratio stood at 17.10 percent at the end of March 2024.
Furthermore, it would help reduce the government’s stake in the bank.
The Government of India holds a 98.25% stake in Punjab & Sind Bank.
Asked about the loan growth outlook for the current financial year, Saha said the bank expects the asset book to grow between 12-14 per cent and in this case, retail, agriculture and MSME (RAM) is expected to witness a growth of 15-18 per cent.
Regarding deposits, he said the bank expects liabilities to grow by 8 to 10 percent during the current fiscal year.
Saha said the bank has taken several customer-centric initiatives to improve satisfaction levels.
As part of this initiative, the bank is in the process of transforming 50 identified branches into model or smart branches.
Saha said the lender has also launched a PSB Pink debit card, powered by RuPay, for women, with a host of benefits.
The bank has also started demat services through wealth technology partner Fisdom, which allows its customers to make investments in the stock market and acquire mutual funds.
The bank has also launched a series of customer-centric digital offerings through its PSB UNiC omnichannel app, designed to ensure secure and hassle-free banking services.
Some of the offers include opening of savings accounts through video KYC, bulk NEFT/RTGS, free access to CIC credit score and registration on UNiC app through Aadhaar OTP.
These new product initiatives, he said, are a testament to the bank’s dedication to making a positive social impact and creating a more sustainable future for everyone.